ARCHIVED - Telecom Order CRTC 2003-91

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Telecom Order CRTC 2003-91

Ottawa, 27 February 2003

O.N.Telcom

Reference: Tariff Notices 98, 98A and 98B

Residential and business primary exchange services

1.

The Commission received an application by O.N.Telcom, dated 8 October 2002, amended on 29 November 2002 and on 10 December 2002, to revise General Tariff CRTC 25520: items 2040 and 2470; and General Tariff CRTC 25300: items 100 and 490, Exchange Service and Miscellaneous Equipment and Services, in order to:

a) increase the monthly residential rates, under General Tariff CRTC 25520, as follows:
- individual line from $17.40 to $20.76;
- two-party line (rate group 3) from $7.50 to $11.70;
- two-party line (rate group 8) from $8.85 to $13.08;
- four-party line (rate group 3) from $7.30 to $11.49;
- four-party line (rate group 8) from $8.50 to $12.73;
- multi-party line (rate groups 3 and 8) from $7.30 to $11.49;
- Push-Tone dial service from $2.45 to $2.51;
b) increase the monthly residential rates, under General Tariff CRTC 25300, as follows:
- individual line from $17.85 to $21.22;
- Push-Tone dial service from $2.00 to $2.05;
c) increase the monthly business rates, under General Tariff CRTC 25520, as follows:
- individual line from $42.60 to $43.72;
- two-party line (rate group 3) from $10.75 to $23.03;
- four-party line (rate group 3) from $9.05 to $22.99;
- four-party line (rate group 8) from $15.50 to $23.16;
- multi-party line (rate group 4) from $9.05 to $22.99;
- trunk line from $42.60 to $43.72;
- Push-Tone dial service from $2.85 to $2.93;
d) increase the monthly business rates, under General Tariff CRTC 25300, as follows:
- individual line from $42.45 to $43.57;
- Push-Tone dial service from $3.00 to $3.08;
e) introduce business trunk line service, under General Tariff CRTC 25300, at the monthly rate of $43.57.

2.

The Commission received no comments with respect to the application.

3.

In Regulatory framework for the small incumbent telephone companies, Decision CRTC 2001-756, 14 December 2001 (Decision 2001-756), the Commission grouped services into four separate baskets each with their own pricing constraints. The Commission assigned residential individual line, multi-line and party line services (residential primary exchange service) and all mandatory local services, such as Touch-Tone, to the first service basket. Similarly, the Commission assigned business individual, multi-line and party line services (business primary exchange service) and all mandatory local services to the second service basket.

4.

In Decision 2001-756, the Commission determined that rates for services that were included in the first and second service baskets would also be permitted to increase each year by inflation plus any exogenous factors. The Commission determined that small incumbent local exchange carriers (ILECs) who were required to contribute to the national contribution fund would be eligible to recover the revenue-percentage charge on capped services through an exogenous factor.

5.

In Decision 2001-756, the Commission determined that the small ILECs could increase monthly residential primary exchange service (PES) rates to $22.75, where residential PES rates were between $18.75 and $22.74. For those small ILECs whose residential PES rates were below $18.75, the Commission limited the monthly residential PES rate increases to a maximum of $4.00 per year. The Commission determined, however, that O.N.Telcom could not raise its monthly residential individual line rate to $22.75 until after 1 January 2003, given the recent increase to its residential service rate effective 1 January 2002.

6.

Further, in Decision 2001-756, the Commission directed all small ILECs, whose monthly business PES rates were below $22.75, to file for approval, proposed increases in business PES rates to reach a minimum of $22.75.

7.

Finally, as part of Decision 2001-756, the Commission determined that unused portions of a possible rate increase for any given year could be accumulated and requested in a following year.

8.

The Commission notes that O.N.Telcom had unused portions of possible rate increases associated with its inflationary and exogenous adjustments allowable in the year 2002, which have been accumulated and requested as part of this application. The Commission notes that O.N.Telcom has been required to contribute to the national contribution fund since 24 May 2002. The Commission notes that the proposed rate increases include inflationary and exogenous adjustments of 1.24% and 1.4% respectively.

9.

The Commission finds that O.N.Telcom's proposed rate increases are in accordance with the Commission's determinations in Decision 2001-756.

10.

With regard to O.N.Telcom's proposal to introduce business trunk line service, under General Tariff CRTC 25300, the Commission notes that in Telecom Order CRTC 2002-381, 13 September 2002, it approved O.N.Telcom's proposal to eliminate the differential between rates for single-line and trunk line business services and granted O.N.Telcom a uniform rate for its single-line and trunk line business service. Accordingly, the Commission considers the proposed business trunk line service, under General Tariff CRTC 25300, at the monthly rate of $43.57 to be appropriate, in light of O.N.Telcom's proposed monthly rate for its individual line business service.

11.

The Commission approves O.N.Telcom's application. The revisions take effect as of the date of this order.

12.

O.N.Telcom is to issue revised tariff pages forthwith to reflect these changes.

Secretary General

This document is available in alternative format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca

Date Modified: 2003-02-27

Date modified: